Mark Gurman, who is working on an iPhone subscription service, might begin the day before the end of the year

Mark Gurman, who is working on an iPhone subscription service, might begin the day before the end of ...

Apple''s hardware subscription service has been in the works for a while and was made public following an article in March this year. A few months later, the same source has confirmed that Apple''s hardware subscription service is currently being tested, and that it will be announced by the end of this year or early next year. Buyers will have to pay a monthly fee and may upgrade to a new iPhone model when available.

Mark Gurman discusses how the service once live is expected to perform quite differently than Apple''s current iPhone Upgrade Programme, which basically allows buyers to split the price of an iPhone over 12-24 months. The new hardware subscription service will be quite different as subscribers to the same would have to pay a monthly fee (like subscription to Apple Music) to purchase the device and then move to a new one; once a new model is available.

According to Gurman, Apple is still testing out its new hardware subscription service and working out how it will integrate its Apple One bundles with it. According to the source, the new service will be launched either later this year or next year, and that Apple did not announce it during its iPhone 14 launch, reducing the complexity of the launch day, assuming that it would be an entirely different way to purchase an iPhone.

What remains to be seen is how many Apple''s devices will be included in this subscription service, and whether it will be extended to Apple''s Mac ecosystem as well. Also important is the price and the fine print that would break the line between owning the devices and simply using them. Gurman in his newsletter also stated that the subscription fee would also depend on the device a user selects.

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According to an earlier study, this new hardware subscription service is meant to benefit Apple well as it is expected to raise more money than the average selling price of an iPhone. This should work out well for Apple as it publishes new features year after year. The consumer benefit with a new and updated device at a reduced cost and does not have to pay the entire cost of purchasing a new device in one go.